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Fair Value Measurement of Assets and Liabilities
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement of Assets and Liabilities Fair Value Measurement of Assets and Liabilities
The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions):
December 31, 2024
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets:   
Cash, cash equivalents and restricted cash
Cash and cash equivalents$2,433 $2,433 $— $— 
Customer accounts763 763 — — 
Restricted cash included in other current assets88 88 — — 
Restricted cash included in other assets2 2 — — 
Total cash, cash equivalents and restricted cash3,286 3,286 — — 
Derivatives97 — 82 15 
Short-term investments:
Corporate debt securities3,094 — 3,094 — 
Government and agency securities363 — 363 — 
Total short-term investments3,457 — 3,457 — 
Long-term investments:
Corporate debt securities1,119 — 1,119 — 
Government and agency securities190 — 190 — 
Total long-term investments1,309 — 1,309 — 
Total financial assets$8,149 $3,286 $4,848 $15 
Liabilities:
Derivatives$18 $— $18 $— 
December 31, 2023
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets:   
Cash, cash equivalents and restricted cash
Cash and cash equivalents$1,985 $1,985 $— $— 
Customer accounts481 481 — — 
Restricted cash included in other current assets23 23 — — 
Restricted cash included in other assets4 4 — — 
Total cash, cash equivalents and restricted cash2,493 2,493 — — 
Equity investment in Adevinta4,474 4,474 — — 
Derivatives396 — 32 364 
Short-term investments:
Corporate debt securities2,162 — 2,162 — 
Government and agency securities371 — 371 — 
Total short-term investments2,533 — 2,533 — 
Long-term investments:
Corporate debt securities328 — 328 — 
Government and agency securities271 — 271 — 
Equity investment under the fair value option335 — — 335 
Total long-term investments934 — 599 335 
Total financial assets$10,830 $6,967 $3,164 $699 
Liabilities:
Other liabilities$10 $— $— $10 
Derivatives$33 $— $33 $— 

Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels during 2024 or 2023.

Other financial instruments, including accounts receivable, funds receivable, accounts payable and funds payable, are carried at cost, which approximates their fair value because of the short-term nature of these instruments.
Fair value measurement of derivative instruments

The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates.

The Adyen warrant, which was accounted for as a derivative instrument, was valued using a Black-Scholes model. Key assumptions used in the valuation included risk-free interest rates; Adyen’s common stock price, equity volatility and common stock outstanding; exercise price; and details specific to the warrant. The value was also probability adjusted for management’s assumptions with respect to vesting of the remaining tranches which were each subject to meeting processing volume milestone targets. In the fourth quarter of 2024, we met the processing volume milestone required to vest in the second tranche of the Adyen warrant. As of December 31, 2024, the probability of meeting the processing volume milestone requirements for the remaining two tranches of the Adyen warrant was zero. The Adyen warrant expired on January 31, 2025. Refer to “Note 7 — Derivative Instruments” for further details on our derivative instruments.

The following table presents a reconciliation of the opening to closing balance of the Adyen warrant measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
December 31,
20242023
Opening balance at beginning of period$364 $214 
Change in fair value158 150 
Exercise of options under warrant(522)— 
Closing balance at end of period$— $364 
Fair value measurement of equity investments

Certain equity investments are measured at fair value on a recurring basis, including our equity investment in Adevinta and equity investments under the fair value option.

Our equity investment in Adevinta was accounted for under the fair value option and classified within Level 1 in the fair value hierarchy as the fair value was measured based on Adevinta’s closing stock price and prevailing foreign exchange rate at each balance sheet date.

Our equity investment in Gmarket was accounted for under the fair value option and classified within Level 3 in the fair value hierarchy as valuation of the investment reflected management’s estimate of assumptions that market participants would use in pricing the asset. In December 2024, we sold our remaining stake in Gmarket valued at $323 million.

The following table presents a reconciliation of the opening to closing balance of the equity investment in Gmarket measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
December 31, 2024December 31, 2023
Opening balance at beginning of period$335 $431 
Change in fair value(12)(96)
Fair value of shares sold
(323)— 
Closing balance at end of period$— $335 

Certain other immaterial equity investments under the fair value option aggregating to $54 million and $47 million as of December 31, 2024 and December 31, 2023, respectively, are measured at fair value using the net asset value per share (or its equivalent) practical expedient, and have not been classified in the fair value hierarchy.

Refer to “Note 6 — Investments” for further details about our equity investments.